At the dawn of the Industrial Revolution, development of the mining and metallurgical industries transformed the country from an agricultural society into an industrial nation; the South Wales Coalfield's exploitation caused a rapid expansion of Wales' population. Two-thirds of the population live in south Wales, mainly in and around Cardiff (the capital), Swansea and Newport, and in the nearby valleys. Now that the country's traditional extractive and heavy industries have gone or are in decline, Wales' economy depends on the public sector, light and service industries and tourism. Wales' 2010 gross value added (GVA) was £45.5 billion (£15,145 per head, 74.0% of the average for the UK, and the lowest GVA per head in Britain).

Although Wales closely shares its political and social history with the rest of Great Britain, and the vast majority of the population speaks English, the country has retained a distinct cultural identity and is officially bilingual. Over 560,000 Welsh language speakers live in Wales, and the language is spoken by a majority of the population in parts of the north and west. From the late 19th century onwards, Wales acquired its popular image as the "land of song", in part due to the eisteddfod tradition. At many international sporting events, such as the FIFA World Cup, Rugby World Cup and the Commonwealth Games, Wales has its own national teams, though at the Olympic Games, Welsh athletes compete as part of a Great Britain team. Rugby Union is seen as a symbol of Welsh identity and an expression of national consciousness.